Where’s the (email marketing) Data?

July 21st, 2008

A recent study by Forrester Research reports that 92% of marketers using permission-based e-mail use it for customer retention. Where are they getting permission? How do they know what to ask for? Why does e-mail work so well for retention? One word: data.When done right, an in-house database is the foundation of your e-mail marketing success. It lets you identify customer needs and interests, use their feedback to fine-tune offers, and analyze behavior for maximum campaign results.

So, Where Does Data Come From?
Data sources are all around us-but the best place to start may be your own backyard. Compile names from existing marketing, customer service and credit lists, then supplement them with names generated at points of customer contact. Remember to ask for e-mail addresses and permission in every communication including:

Point of sale (in-store and online)
Satisfaction surveys
Customer registrations
Website
Direct mail
Broadcast or print advertising
Tech support/customer service communications

In-house lists are the most valuable because customers already know you and are more likely to opt-in. However, highly targeted lists are also available from brokers and vendors. Here are some tips on what to look for when shopping:

Make sure names were gathered in an opt-in manner.
Check list usage, what companies tested the list and whether they used it again after testing.
Ask how often the list is updated and when the last update occurred.
Find out the list origination date to determine if e-mail addresses are current.

Data Points: What’s the Point?

When you start collecting data, it’s tempting to collect everything imaginable. You may have no clue how to use it all, but you might as well ask for it, right? Trouble is, too much raw data can be overwhelming. You’re probably better off to start with the most vital information and build from there, using criteria unique to your business. Here are a few must-haves:

Full name (with first and last in separate fields)
Gender
City, state, zip (in separate fields)
E-mail address
Categories of interest specific to your company or product, e.g., hobbies or book preferences
Demographics such as age, income, marital status and education

Using this basic intelligence, you can create segmented lists, analyze responses and begin mining data to send customized, relevant e-mail campaigns.

Data: Intelligence to Action
Database packages like Microsoft SQL Server, Oracle and IBM DB are powerful repositories, but transforming data from “nice to know” intelligence into actionable marketing information is the role of e-mail software. By capturing responses in real time, e-mail campaigns can generate immediate marketing ammo-even offline. For example, a clothing retailer’s e-mail campaign featuring three t-shirt styles indicates the hot seller; the results can be used to adjust in-store displays and floor set-up to immediately capitalize on the trend.

Integrated database and e-mail software duos can also make for powerful online promotions. Responses to an e-mail campaign for an online bank, for instance, show traction for a specific service for small business banking. The bank’s website home page can be changed to feature this offer, or a campaign providing transactional sign-up capabilities within the message can be sent.

Make Mine Manageable
Managing e-mail databases and marketing campaigns can be handled in-house-provided you have adequate IT resources and support. A second option is to outsource everything to an e-mail marketing service. Finally, e-mail marketing programs are available in the ASP model, which means the service provider maintains the software and equipment and you simply use it online for a monthly fee.

When outsourcing, make sure your vendor offers automated, real-time data loading; otherwise, your offer will lose its effect waiting days for traditional downloads.

Filed under: B2B Marketing Blogs, B2B Marketing Ideas, Database Marketing, Email Marketing, Lead Generation, Lead Nurturing, b2b marketing books, crm, digital marketing, double opt-in, email marketing best practices, email marketing services, email marketing software, internet marketing guides, lead acquisition, marketing, michael e. williams, web marketing